Why These 4 Automotive Stocks Soared Monday
Shares of AutoNation (NYSE: AN), CarMax (NYSE: KMX), Group 1 Automotive (NYSE: GPI), Sonic Automotive (NYSE: SAH), and just about every other publicly traded automotive dealership group were soaring (some by double digits or higher) on Monday after a handful of positive developments made headlines. CarMax closed 5.2% higher, AutoNation was up 9.8%, Sonic finished 17.5% higher, and Group 1 was the big winner, up almost 20%.
Before we get to automotive related news, one comment that propelled broader markets higher today was from Federal Reserve Chairman Jerome Powell. He noted that the central bank still had plenty of ammunition if needed, and that while second-quarter data is likely to be rough, the economy is expected to recover gradually through the second half of 2020. For investors, it's nothing that hasn't been said before, but it's reassuring that the Fed is willing and able to do what it takes to get the economy back on track.
Another positive development for the markets today was from Moderna, a biotech, when it announced its vaccine mRNA-1723 was found to be safe, well tolerated, and capable of producing antibodies that could "neutralize" the new coronavirus in patients. It brings hope the COVID-19 impacts can be controlled sooner, rather than later. Late-stage trials could start as soon as July.
Source Fool.com
